VA disability check and Social Security reduction ?

IKE

IKE

Well-known Member
Location
Oklahoma....U.S.A.
Good evening all,

Well I've been retired since April 1st and so far I'm really liking it although with winter coming I can see where I'm going to have to find something to do to keep from getting 'cabin fever'.

Anyway, I received my VA benefit entitlement letter yesterday and they've rated me at 70% disabled related to my exposure to agent orange while in Vietnam........my totally tax free VA disability check is going to be slightly more than I receive now in hand from SS after my part B deduction.

I assume that I now have to notify SS of my additional VA monthly income and can expect that they will reduce my monthly SS benefit considerably, correct ?

Ike
 
I don't think either one affects the other, as long as you are getting SS RETIREMENT benefits, as opposed to SSI. Neither VA disability benefits nor SS retirement benefits are means tested, which means other income has no impact. SSI IS means tested, so other income would affect that. HOWEVER, I would check with Social Security directly just to be certain (at their 800 number, rather than the local office -- my experience is I get better information from the 800 number. Now they have a thing where you can schedule a call back to you rather than waiting forever on hold if they're backed up). As to what, if any tax impact there might be, check with an accountant, or maybe Social Security could answer that question, too.
 
You were correct Butterfly.

I just got off the phone from talking to the folks at SS......my VA disability check will not have any bearing on my SS check.

Ike
 
I was shot in Vietnam and receive a disability from the VA with no loss from my SS check.
 
I'd heard stories that it took forever (a year minimum) to finally get approved or denied from the VA but I was pleasantly surprised..........just seven months to the day from the time I mailed in my initial paperwork.

Money wise retirement just became a whole lot better. :)
 
IKE said:
I'd heard stories that it took forever (a year minimum) to finally get approved or denied from the VA but I was pleasantly surprised..........just seven months to the day from the time I mailed in my initial paperwork.

Money wise retirement just became a whole lot better. :)
Click to expand...
Good to hear Ike...Enjoy your retirement...580.gif
 
The confusion that I and others have had might come from this...I was told that you cannot receive a FULL VA disability and military retirement check at the same time. The Gov't will reduce the military pension payment by the exact amount of the VA disability payment. You will then get a monthly pension check and a VA disability check (two separate checks) but the two checks will net the exact same amount you were getting before in one check. Just coming out of different funding sites.

To the best of my knowledge I believe this is correct... VA disability does not affect a social security payment but does affect military retirement pensions. However, in the latter case you'll get the same amount in total, it'll now come in two checks.

.
 
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You might want to check your facts, Skyking.

Since the law was changed in 2004, it depends on your degree of disabililty.

[h=2]Concurrent Retirement Disability Pay (CRDP)[/h] Concurrent Receipt Laws: Up until 2004, the law prevented military retirees from receiving part or all of their military pay if they also received disability compensation from the VA. Military members had to choose which payment they wanted to receive: military retirement pay, or VA disability compensation. If they chose to receive both forms of payment, they had to offset, or waive, a portion of their military retirement pay equal to the amount they received from the VA. Basically, it prevents servicemembers from double-dipping and receiving compensation from both the VA and the military.
In 2004, the law was changed, and military retirees were eligible to receive both military retirement pay and VA disability compensation, but only if they had a VA service-connected disability rating of 50% or higher.
Here is how the compensation breaks down if you are eligible to receive both types of compensation:

  • VA disability rating of 40% or lower. Military retirees who choose to receive VA disability compensation will have their military retirement pay offset by the amount of compensation they receive from the VA. Most retirees choose to receive their VA disability compensation because it is tax-free income, while their military pension is taxed by the federal government and by most states. They still receive the same amount of total compensation they otherwise would have received, however, the VA compensation portion is tax-free, giving them more spending power.
  • VA disability rating of 50% or greater. Military retirees with a disability rating of greater than 50% are eligible to receive both payments under CRDP. They will receive their full military retirement pension, along with 100% of their VA disability compensation. They do not need to offset their military pay by the amount of the compensation they receive from the VA.
 
Thank you Butterfly. You are correct, what I described was incomplete misleading in that it was for a below 50% VA Disability compensation. I did not know about the greater than 50% caveat.
 
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